A new Cisco study reveals a significant architectural shift in enterprise networks as the demand for AI, IoT, and cloud technologies accelerates.
The research, 97% of IT leaders view modernised networks as essential for deploying these technologies, with 91% planning to increase their networking budgets.
The study highlights that the rise of AI-driven workloads is creating more complex and latency-sensitive network traffic. Coupled with the growing number of connected devices and the need for 24/7 uptime, these changes necessitate a reevaluation of network infrastructure. IT leaders recognise that the networks they build now will shape their organisations' futures.
The report indicates six key signals of this shift:
- Strategic priority: A modernised network is deemed critical for 97% of IT leaders, with 91% intending to allocate more of their IT budget to networking.
- Security importance: Secure networking is vital for 98% of respondents, with 61% stating it is critical to operations. A majority believe improved networks will enhance cybersecurity.
- Resilience demand: With 95% of IT leaders citing the importance of resilient networks, the study notes that 77% faced significant outages last year, leading to global losses of $160 billion.
- Revenue growth via AI: Over half of IT leaders believe that modern networks will significantly impact revenue by enabling AI tools that enhance customer journeys.
- Infrastructure challenges: 71% of leaders report their data centres are not prepared for current AI demands, prompting 88% to plan capacity expansions.
- Smart networks: While 98% agree that autonomous, AI-powered networks are essential for future growth, only 41% have implemented the necessary intelligent capabilities.
“AI is changing everything — and infrastructure is at the heart of that reinvention. The network has powered every wave of digital transformation,” said Chintan Patel, CTO at Cisco EMEA. He emphasised that those who act now will lead in the AI era.
The financial benefits of modern networks are already apparent, with many IT leaders noting improvements in customer experiences, efficiency, and innovation.
However, the potential value is at risk if infrastructure is not designed for AI scalability. Leaders have identified critical gaps, including siloed systems and incomplete deployments, which must be addressed to fully realise growth and savings.
As the C-suite aligns with IT leaders on the importance of infrastructure, 97% are expanding AI use, and 78% depend on their CIOs and CTOs for investment decisions. The study underscores that outdated infrastructure is a barrier to growth, highlighting the need for trusted partnerships to navigate these changes effectively.